You’d better be, because the White House told Wall Street Journal that it will hold onto its GM stake for “at least two years.” Out of “necessity,” no less. And burning $10bn in cash per quarter all the way. According to the WSJ report, the White House still doesn’t want to involve itself in day-to-day operations. Is that offer only good outside of bankruptcy? If Chrysler is the canary in the coal mine, the answer seems to be yes.
Meanwhile, as the government moves to protect its investments on our behalf, the lawyers have weaseled their way to the front of the Chrysler payout line. Automotive News [sub] reports that Chrysler lawyers have “taken the unusual step of asking a judge to give their fees special priority.” Unusual how? Who doesn’t want “superpriority”? Besides taxpayers, of course. Anyway, the steps seem to indicate that a lot of people will be walking away from the Chrysler bankruptcy empty-handed; Chrysler’s Day Jones and Capstone counsel not being among them. “It’s uncommon for lawyers not to get paid. I suspect they’re not optimistic about a carve out,” says Professor David Skeel of UPenn.